FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables summarize the fair value hierarchy of financial assets and liabilities of the Company that are measured at fair value as of March 31, 2026 and December 31, 2025:


AS OF MARCH 31, 2026 (MILLIONS)	Level I		Level II		Level III		NAV		Total
Assets
Cash equivalents	$	711	$	—	$	—	$	—	$	711
Financial assets	—		—		433		—		433
Investments:
Common and preferred shares	—		—		64		28		92
Investments in affiliates	—		—		—		643		643
Equity method investments under fair value option	—		—		260		—		260

Total assets at fair value	$	711	$	—	$	757	$	671	$	2,139
Liabilities
Financial liabilities	$	—	$	14	$	453	$	—	$	467
Total liabilities at fair value	$	—	$	14	$	453	$	—	$	467


AS OF DECEMBER 31, 2025 (MILLIONS)	Level I		Level II		Level III		NAV		Total
Assets
Cash equivalents	$	1,181	$	—	$	—	$	—	$	1,181
Financial assets	—		7		410		—		417
Investments:
Common and preferred shares	—		—		310		27		337
Investments in affiliates	—		—		—		700		700
Equity method investments under fair value option	—		—		330		—		330

Total assets at fair value	$	1,181	$	7	$	1,050	$	727	$	2,965
Liabilities
Financial liabilities	$	—	$	5	$	444	$	—	$	449
Total liabilities at fair value	$	—	$	5	$	444	$	—	$	449

The following tables summarize the fair value hierarchy of financial assets and liabilities measured at fair value for the Company's consolidated funds as of March 31, 2026 and December 31, 2025:


	2026								2025
AS OF MARCH 31, AND DECEMBER 31, (MILLIONS)	Level I		Level II		Level III		Total		Level I		Level II		Level III		Total
Assets
Investments in equity securities	$	—	$	—	$	2,212	$	2,212	$	—	$	—	$	253	$	253
Investments in debt	—		—		170		170		—		—		252		252
Freestanding derivatives	—		5		—		5		—		—		—		—
Total assets at fair value	$	—	$	5	$	2,382	$	2,387	$	—	$	—	$	505	$	505
Liabilities

Borrowings	$	451	$	—	$	—	$	451	$	462	$	—	$	—	$	462
Total liabilities at fair value	$	451	$	—	$	—	$	451	$	462	$	—	$	—	$	462

Fair Value Measurement Inputs and Valuation Techniques

The following tables summarize the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of March 31, 2026 and December 31, 2025:

AS OF MARCH 31, 2026

(MILLIONS)

Asset/Liability

Fair Value

Valuation
Techniques

Unobservable
Inputs

Ranges

Weighted
Average (a)

Impact to Valuation from an Increase in Input

Financial assets (b)

433

Option pricing model

Volatility

35% - 40%

Higher

Discount rate

3% - 9%

Lower

Common and preferred shares (c)

Market approach

N/A

Equity method investments under fair value option (d)

260

Market approach

N/A

Financial liabilities (e)

453

Option pricing model

Volatility

25% - 40%

Higher

Discount rate

3% - 4%

Lower

AS OF DECEMBER 31, 2025

(MILLIONS)

Asset/Liability

Fair Value

Valuation
Techniques

Unobservable
Inputs

Ranges

Weighted
Average (a)

Impact to Valuation from an Increase in Input

Financial assets (b)

410

Option pricing model

Volatility

35% - 40%

Higher

Discount rate

3% - 9%

Lower

Common and preferred shares (c)

310

Market approach

N/A

Equity method investments under fair value option (d)

330

Market approach

N/A

Financial liabilities (e)

444

Option pricing model

Volatility

25% - 40%

Higher

Discount rate

3% - 4%

Lower

(a)Unobservable inputs were weighted based on the fair value of the investments included in the range.

(b)Financial assets relate to call options held by the Company to acquire additional shares of Primary Wave, LCM, Angel Oak and Castlelake from other investors of the investee using a prescribed valuation methodology in exchange for cash, Class A Shares or BN Class A Shares or other forms of consideration at the discretion of the Company. Financial assets also includes a financial guarantee that ensures a pre-determined return is earned on the economic interest in Pretium. The fair value of these instruments is determined quarterly using a Monte Carlo simulation and various inputs prepared by management.

(c)Common shares categorized as Level III represents investments of $64 million (2025 – $64 million). Preferred shares represent $nil of preferred shares in GEMS Education (2025 – $188 million) and $nil preferred shares of Cherry Parent, LLC (2025 – $58 million). Preferred share investments are carried at fair value with changes in fair value recorded in the condensed consolidated statements of operations.

(d)Equity method investments under fair value option represents an approximate 9% (2025 – 11%) economic interest in Pretium of $260 million (2025 – $330 million) for which BAM has elected the fair value option under ASC 825 Financial Instruments upon initial recognition with changes in fair value recognized in the condensed consolidated statements of operations.

(e)Financial liabilities relate to put options held by other investors of Oaktree, Castlelake, LCM and Primary Wave under which the Company may be required to purchase additional shares of these investees using a prescribed valuation methodology in exchange for cash, Class A Shares or BN Class A Shares or other forms of consideration at the discretion of the Company. The balance also includes contingent consideration agreed to as part of the acquisition of certain investments and other financial derivatives. The fair value of these instruments is determined quarterly using a Monte Carlo simulation and various inputs prepared by management.

AS OF MARCH 31, 2026

(MILLIONS)

Level III Asset/Liability

Fair Value

Valuation
Techniques

Unobservable Inputs

Ranges

Weighted
Average (a)

Impact to Valuation from an Increase in Input

Investments in equity securities

2,212

Discounted cash flows

WACC

10% - 19%

Lower

Terminal multiple

8.7x - 18.0x

11.6x

Higher

Hypothetical liquidation approach

EBITDA multiple

7.7x

Higher

Market approach

N/A

Investments in debt

170

Par (net of amortized discount) plus
accrued interest

Discount rate

14%

Lower

AS OF DECEMBER 31, 2025

(MILLIONS)

Level III Asset/Liability

Fair Value

Valuation
Techniques

Unobservable
Inputs

Ranges

Weighted
Average (a)

Impact to Valuation from an Increase in Input

Investments in equity securities

253

Market approach

N/A

Investments in debt

252

Par (net of amortized
discount) plus
accrued interest

Discount rate

14%

Lower

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables summarize the changes in financial assets and liabilities measured at fair value for which the Company has used Level III inputs to determine fair value. Total realized and unrealized gains and losses recorded for Level III investments are reported in other income (expenses), net in the condensed consolidated statements of operations.


AS OF AND FOR THE THREE MONTHS ENDED MARCH 31, 2026 (MILLIONS)	Financial assets		Common and preferred shares		Equity method investments under fair value option		Financial liabilities
Balance, beginning	$	410	$	310	$	330	$	444
Fair value changes in net income	23		65		(4)		9
Disposals	—		—		(66)		—
Transfers	—		(311)		—		—



Balance, ending	$	433	$	64	$	260	$	453


AS OF AND FOR THE THREE MONTHS ENDED MARCH 31, 2025 (MILLIONS)	Financial assets		Common and preferred shares		Equity method investments under fair value option		Financial liabilities
Balance, beginning	$	231	$	363	$	351	$	228
Fair value changes in net income	(22)		3		(20)		13



Purchases	—		—		—		61




Balance, ending	$	209	$	366	$	331	$	302


AS OF AND FOR THE THREE MONTHS ENDED MARCH 31, 2026 (MILLIONS)	Investments in debt		Investments in equity securities
Balance, beginning	$	252	$	253
Fair value changes in net income	—		7
Initial consolidation of funds	41		1,882

Purchases, net	—		83
Dispositions, net	(123)		(13)
Balance, ending	$	170	$	2,212


AS OF AND FOR THE THREE MONTHS ENDED MARCH 31, 2025 (MILLIONS)	Investments in equity securities
Balance, beginning	$	251
Fair value changes in net income	14



Purchases, net	157



Balance, ending	$	422

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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